Traveling in Mexico has to follow one cardinal principle with respect to travel insurance, and that is, Mexico recognizes travel insurance of companies registered within its territory only. Travel insurance from foreign companies cannot be used as proof of financial responsibility in Mexico.
For the American traveler getting Mexican travel insurance is not difficult as travel insurance for Mexico can be purchased from a U.S. agency, if that agency has a Surplus Lines insurance license. The Surplus Lines insurance license gives the agency the ability to represent and sell policies from the Mexican travel insurance market.
The average American traveler is generally interested to know what the Mexican travel insurance provides beyond financial responsibility. For Americans driving down to Mexico there could be coverage for their cars, as well as damage to the cars of the other drivers while some policies provide compensation for a stolen vehicle.
Certain policies cover medical expenses while some others prepare a driver for other possible needs in Mexico.
Mexico Auto Insurance
It is unlawful to operate an automobile in Mexico without proper automobile insurance issued by a Mexican insurance company, according to Mexican civil statutes. It is absolutely important to realize that although some companies offer an endorsement that covers an American registered vehicle for physical damage or medical payments on US policies in Mexico, it is no longer recognized by Mexican authorities, and their law is clear – foreign drivers must be covered by Mexican insurance in Mexico.
Auto accidents are considered criminal offenses in Mexico, and regardless of fault, vehicles involved in the accident are usually impounded. Therefore, before buying Mexican insurance it is advisable to inquire from the Mexico insurance provider about their vehicle impound recovery and Legal Aid program. Certain insurance services in Mexico offer Legal Aid on all Complete Coverage’ policies that include vehicle impound recovery. The traveler must however note that like most insurance policies, being under the influence of drugs or alcohol could result in his policy being considered null and void in the event of a claim.